SEC Open to Bitcoin ETF In-Kind Redemptions for Increased Efficiency

The SEC is exploring the possibility of allowing in-kind redemptions for Bitcoin exchange-traded funds (ETFs), a move that could streamline redemption processes and benefit both issuers and investors. This comes after several firms, including BlackRock, submitted proposals earlier this year seeking to implement more efficient methods of redemption for Bitcoin ETFs. Commissioner Hester Peirce’s recent statement signaling openness to in-kind models follows growing demand from issuers.